Miliband reminds us how Thatcher inspired him

"She moved the centre ground of British politics," the Labour leader said. He is trying to achieve the same feat today.

Ed Miliband's dignified and well-crafted statement on Margaret Thatcher's death reminded us of the inspiration he took from the former prime minister. As he pointedly noted, "She moved the centre ground of British politics". Today, Miliband is attempting to achieve something similar. Labour, he has declared, must seek not just to just to return to power in 2015 but to make its values and ideas the "common sense of our age". Just as Thatcher rejected the decades-long postwar consensus, so Miliband has rejected the consensus established by her government and faithfully adhered to by every prime minister since. Like her, he aspires to be a genuinely transformative leader. 

Despite the huge majorities won by Labour in 1997 and 2001, Tony Blair and Gordon Brown continued to view Britain as a fundamentally conservative country. By contrast, Miliband believes, as his chief strategist Stewart Wood put it today (in reference to Thatcher), that "real change inspired by values" is possible. He has rejected, for instance, the Blairite notion that it is neither possible nor desirable for the state to seek to reduce inequality. As he declared in his speech at last year's Labour conference, "I will never accept an economy where the gap between rich and poor just grows wider and wider. In one nation, in my faith, inequality matters.". Here, too, the parallels with Thatcher are striking. "The Old Testament prophets did not say, 'Brothers, I want a consensus,'" she once remarked. "They said, 'This is my faith. This is what I passionately believe. If you believe it, too, then come with me'". 

There remains a notable gap between the boldness of Miliband's rhetoric and the relative timidity of his policy proposals. Reintroducing the 10p tax rate and requiring public sector contractors to pay the living wage will hardly have the transformative effect that Thatcher's measures did. The ambition, however, is admirable. As Miliband's advisers are fond of pointing out, the word "privatisation" does not appear in the 1979 Conservative manifesto. In time, they suggest, greater radicalism will come. 

Ed Miliband walks through Hyde Park after addressing TUC members at the end of a march in protest against the government's austerity measures. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Labour must unite idealists and nativists to beat Ukip

The party has no coherent economic policy, says Labour donor John Mills. 

The heart of the dilemma faced by Labour is that, by and large, its working-class supporters think that you should look after your own first and everyone else afterwards, while its more idealistic middle-class supporters don’t share these nativist views. Add to this the fact that the Labour party nowadays is more middle class, more internationalist, more public sector-orientated, more metropolitan, more intellectual and less interested in winning elections than it has ever been before, and you can see why Ukip is a huge potential threat.

Ukip started by attracting mainly disaffected Conservative voters who thought their party was weak on the EU and who didn’t like David Cameron’s liberal approach to social issues. More recently, especially during the EU referendum, Ukip picked up a huge amount of Labour support. Of the 9.3m people who voted Labour in the 2015 general election, close to 3.5m of them voted for Leave – and half of these people say they are not going to vote Labour in future. Where are they going to go?

The crucial issue is whether Ukip, having gone through all its recent traumas, will get its act together to scoop up these footloose voters. Up to now, the glue which has held Ukip together has been hostility to the EU and distrust of the political establishment. It has lacked coherent policy. This leaves Ukip still essentially a protest operation rather than as a potentially governing party. But this could change. 

With Labour now increasingly idealistic rather than nativist, Ukip may pull together a string of policies that promise support for working-class solidarity, immigration restrictions, social conservatism and a reindustrialisation plan – very much the platform which won Donald Trump the US presidency. Such a manifesto could attract sufficiently widespread working-class support to make large numbers of Labour seats vulnerable. Ukip came second in 120 constituencies during the 2015 general election. There doesn’t have to be a very large swing for Ukip to start picking up enough seats to make the prospect of a future Labour government more and more remote.

Faced with this prospect, what can Labour do? Three key strategies suggest themselves. One is to avoid alienating potential Labour supporters by trying to persuade them that they should have voted Remain. On the contrary, the party must clearly accept the referendum result, and fight hard and constructively towards getting the best possible Brexit deal. 

Second, Ukip is weak on economic policy. It is all very well to promise reindustrialisation and better jobs, but how is Ukip going to fulfil them? Populism shades very easily into protectionism. There is a principled case for open markets to produce more prosperity - but this may only be possible if there are also changes to monetary and exchange rate policy to avoid unmanageable commercial competition. Ukip may, like the Labour party, find this a hard case to make.

Third, Labour needs to change its tone. There needs to be less talk of abstract universal values and more of concrete steps to improve people’s lives. Labour must celebrate working-class attitudes to self-help, trade unionism, mutual support, patriotism and solidarity. The party must build on the huge influx of members, not least because they are the cadres for the future, but it also must avoid alienating old supporters with many years of experience and commitment. It is up to the party leadership to create such a change.

As it stands, too many Labour people are still trying to derail Brexit. The party has no coherent economic policy and it still looks too London-centric, divorced from its working-class roots. Not a good place to be if Ukip pulls itself together. 

John Mills is a businessman and a Labour donor. He founded the group Labour Leave ahead of the EU referendum and has recently published the pamphlet "Why Trump Won"